Whither retail as Apple touts iPhone 4S?

Technology retailers and experts were predicting the launch of Apple’s iPhone 5 would deliver a desperately needed boost for the sector and may be disappointed that the electronics giant launched only an updated version of the existing iPhone 4.

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“We’re absolutely looking forward to the iPhone 5," he said. “It’s fairly unique in the market because all you need to do is let customers know you’ve got it.

“Because there’s such a demand for the product that without question demand will outstrip supply in the early days of launch."

He said the company had plenty of experience selling the previous generations of iPhones and already had plans in place on how to market the product to hungry consumers.

“We’ve had many of these launches before so we know how we’re going to do it," he said. “It’s all based on when it’s available because we’re ready to go and we can act very quickly with these types of products."

Although each sale of the device would help JB Hi-Fi thanks to contractual arrangements with telcos, Mr Smart said the increased foot traffic would also be a good way to sell accessories and unrelated products.

However, he said the only way stores would be able to sell the highly anticipated device was with plans through the telcos and the expected boost would therefore bypass retailers without an established relationship in place.

“We’ll be selling it through Telstra and their plans so it’s still good for the business in sales," he said. “It’s also a good traffic driver into the stores and we then have a great opportunity to do further add-on sales.

“It’s only going to be those with access to this product that will benefit."

IDC analyst Trevor Clarke said it remained to be seen whether the coming iPhone was a success with customers but added that the company was doing a great job of convincing customers its devices were must-haves.

“Although there’s a trend of people going into stores to check out products they can purchase online, the fact they’re going in is still a good thing for these retailers," he said. “It’s not just a matter of getting great margins on the back of this phone but also the good will that is associated with this brand and product.

“Foot traffic in retail stores is always an important metric, so if they’re smart in terms of their floor positioning and how they’re marketing around the accessories then, yes, it’ll help."

He said Apple was one of the few brands that companies like Myer and David Jones were happy to associate themselves with in their marketing.

Dick Smith merchandise manager Tim Gunn said the company would not offer the iPhone 5 because it did not sell post-paid contracts via telcos.

But a month ago it cautiously began selling older iPhone 3 devices on prepaid contracts.

The Dick Smith group found that despite their age they were still much more popular than expected.

“It’s been a success for us and exceeded our forecasts and it’s a couple of years old," he said. “There’s certainly great brand awareness with the iPhone.

“In that price band it’s sold better than some of our other phones."

Details of the phone were set to be released in the United States overnight. Journalists were invited to Apple’s headquarters with a simple message, “Let’s talk iPhone."